On June 30, 2021, Blair Industries had outstanding $82 million of 8% convertible bonds that mature...

 

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On June 30, 2021, Blair Industries had outstanding $82 million of 8% convertible bonds that mature on June 30, 2022. Interest is payable each year on June 30 and December 31. The bonds are convertible into 6 million shares of $10 par common stock. At June 30, 2021, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2021, half the bonds were converted when Blair's common stock had a market price of $44 per share. When recording the conversion, Blair should credit paid-in capital-excess of par: On June 30, 2021, Blair Industries had outstanding $82 million of 8% convertible bonds that mature on June 30, 2022. Interest is payable each year on June 30 and December 31. The bonds are convertible into 6 million shares of $10 par common stock. At June 30, 2021, the unamortized balance in the discount on bonds payable account was $4 million. On June 30, 2021, half the bonds were converted when Blair's common stock had a market price of $44 per share. When recording the conversion, Blair should credit paid-in capital-excess of par:

Answer rating: 100% (QA)

When Blair converts the bonds into common stock the credit entry in the Paidin CapitalExcess of Par ... View the full answer